Auto Parts: There’s ‘Low-Hanging Fruit’ to Reclaim from Amazon
Dealers who use Amazon nonetheless need to diversify their components business model, consultant Hedges advises. He says he sees “plenty of sellers who sell on Amazon but want to be less depending on it.” He recommends paying enough attention to other e-commerce platforms — notably eBay, which he notes has less attain but also charges decrease charges — and even more, the dealership’s own website. Hedges estimates that 10 to15 percent of U.S. franchised dealerships sell on Amazon Marketplace and says that share is prone to develop.
Amazon seems intent to compete with the traditional auto parts retail chains on convenience and lower prices. For instance, one RedTop Optima automobile battery that sells for $216 at AutoZone is listed at $166 on Amazon. Additionally, Amazon offers same-day delivery on auto components in 40 US cities, funding bank Jefferies stated in a report released last September. This could take away the necessity to ship bulky metallic components via traditional package delivery. This will put Amazon in direct competition with aftermarket auto elements retail chains like Autozone, Advance Auto Parts, and O’Reilly Auto Parts.
The company makes around fifty eight% of its gross … Read More